SOURCE: Rural/Metro Corporation

Rural/Metro Corporation

June 20, 2011 07:00 ET

Rural/Metro Finalizes New Contract to Continue Exclusive Emergency Ambulance Services to City of San Diego

Company to Acquire City's Interest in San Diego Medical Services Enterprise, L.L.C.

SCOTTSDALE, AZ--(Marketwire - Jun 20, 2011) - Rural/Metro Corporation (NASDAQ: RURL), a leading national provider of ambulance and private fire protection services, announced today that it has finalized a new contract to continue as the City of San Diego's exclusive provider of emergency ambulance services through June 2013.

Michael DiMino, President and Chief Executive Officer, said, "We are very pleased that the City of San Diego has once again selected Rural/Metro as its trusted, exclusive provider of emergency medical ambulance services in this growing, high-performance 911 system.

"We are tremendously proud of the excellent services we have provided in 14 years as the City's EMS partner, and our dedicated work force of emergency professionals will continue to deliver the highest quality services as we move forward under the new agreement."

The two-year agreement begins July 1, 2011 and is expected to generate annualized net revenue of approximately $55 million.

The contract reflects the City's new service delivery model, which involves the City no longer being an equity partner in a joint venture with Rural/Metro. Instead, the Company has entered into a definitive agreement to acquire the City's interest in San Diego Medical Services Enterprise L.L.C. (SDMSE) for $5.5 million, following a vote last week by the San Diego City Council authorizing the sale. Upon completion of the purchase, which is scheduled to occur on June 30, 2011, Rural/Metro will own 100% of the interest in the former joint venture and will retain all operating assets and contracts currently served by SDMSE.

Rural/Metro and the City continue to work toward a resolution of matters raised in a City Auditor's report issued on April 25, 2011 regarding Rural/Metro's role in SDMSE. To facilitate a timely process, Rural/Metro and the City are working with the assistance of a neutral mediator and third-party auditor.

About Rural/Metro

Rural/Metro Corporation provides emergency and non-emergency ambulance services and private fire protection services in 20 states and approximately 440 communities throughout the United States. For more information, visit the Company's web site at www.ruralmetro.com.

SAFE HARBOR PROVISIONS FOR FORWARD-LOOKING STATEMENTS
The foregoing reflects the Company's views about its future financial condition, performance and other matters that constitute "forward-looking" statements as such term is defined by the federal securities laws. Many of these statements can be found by looking for words such as "believe," "anticipate," "expect," "plan," "intend," "may," "should," "will likely result," "continue," "estimate," "project," "goals," or similar words used herein in connection with any discussions of future operating or financial performance or business prospects. We may also make forward-looking statements in our financial reports filed with the Securities and Exchange Commission (SEC), investor calls and other investor communications. These forward-looking statements are subject to the safe harbor protection provided by federal securities laws. These forward-looking statements are subject to numerous risks, uncertainties and assumptions, including those relating to the Company's future business prospects, uncompensated care, working capital, accounts receivable collection, liquidity, cash flow, EBITDA, adjusted EBITDA, capital expenditures, insurance coverage and claim reserves, capital needs, key operating metrics, future growth plans, future operating results, and future compliance with covenants in our debt facilities or instruments. In addition, the Company may face risks and uncertainties related to other factors that are listed in its periodic reports filed under the Securities Exchange Act. Although the Company believes the expectations reflected in its forward-looking statements are based upon reasonable assumptions, because the statements are subject to risks and uncertainties, the Company can give no assurance that its expectations will be attained or that actual developments and results will not materially differ from those expressed or implied by the forward-looking statements. Readers are cautioned not to place undue reliance on the statements, which speak only as of the date hereof. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as may be required by law.

(RURL/G)

Contact Information

  • CONTACT:
    Liz Merritt
    Rural/Metro Corporation
    (480) 606-3337
    Sharrifah Al-Salem, FD
    (415) 293-4414